Central Government Rejected Demand for Raising of Bonus Ceiling

GOVERNMENT REJECTED DEMAND FOR RAISING OF BONUS PAYMENT CEILING TO CENTRAL GOVERNMENT EMPLOYEES

F.No.7/4/2014-E-III(A)
Government of India
Ministry of Expenditure
(E-IIIA Branch)

North Block, New Delhi
Dated the 25th Feb, 2016

To,
Sh.Shiva Gopal Mishra
Secretary (Staff-side)
Joint Consultative Machinery(JCM)
13-C, Ferozshah Road,

New Delhi-110001.

Subject: Raising of bonus payment ceiling to Central Government employees.

Sir,
I am directed to refer to your L.No. NC-JCM-2015-S.C dated 11.1.2016 on the subject mentioned above and to say that the issue raised therein has been considered.

2. At the outset, till now there has not been a complete parity between Payment of Bonus Act, 1965 and the bonus for Central Government employees in regard to the two different ceilings, one relating to the calculation and the other relating to eligibility. While the calculation ceiling has been the same, the eligibility ceiling has been different and even the revised eligibility ceiling of Rs. 21,000 under the amended Payment of Bonus Act, 1965 is not higher than that in case of the Central Government employees where all non-gazetted employees are eligible for bonus. This being so, a complete parity for the purpose of calculation ceiling of Rs. 7000 p.m., that too, from 1.1.2014, is not justifiable.

3. Most importantly, the 7th Central Pay Commission, which has gone into the issue of bonus scheme in detail in respect of the Central Government employees, has felt that instead of bonus, there should be introduced the Performance related Pay (PRP) for all categories of Government employees and this PRP should subsume the existing bonus scheme.

The Commission has further recommended that since there would be a time log in implementing the PRP, the existing scheme should be reviewed and linked with increased profitability/productivity under the well-defined parameters. The recommendations of the Commission are separately being examined and an appropriate view would be taken as and when the Government decision on the recommendations of the 7th Central Pay Commission is known. Till such time, therefore, it may not be possible to revisit the issue of calculation ceiling in case of Central Government employees for the purpose of PLB/ad-hoc bonus.

4. This has the approval of the Finance Secretary

Yours Sincerely,
(Ashok Kumar)
Under Secretary to the Govt of India
Ph.23095650

Source: Confederation

Online petition against retirement tax goes viral

Online petition against retirement tax goes viral

An online petition against retirement tax has gone viral on social media with nearly 3,000 signups seeking urgent and immediate withdrawal of Provident Fund Tax just a day after it was announced in the Budget.
The petition was started by a finance professional from Gurgaon, Vaibhav Aggarwal, and nearly 3,000 people have already supported his appeal to Finance Minister Arun Jaitley to immediately withdraw the decision to tax EPF.

Budget for 2016-17 seeks to impose a retirement tax at the time of final withdrawal on 60 per cent of contributions made after April 1, 2016, to EPF and other schemes.

“This is a draconian act and will be a killer blow to the already tax burdened salaried class which pays 30 per cent income tax and 30 per cent taxes in indirect form customs, excise, service tax etc,” the petition said.
Meanwhile, the government today said PPF will not be taxed on withdrawal and only the interest accrued on contributions to employee provident fund made after April 1 will be taxed while the principal will continue to remain tax exempt.

Revenue Secretary Hasmukh Adhia said the proposal, is to tax the interest accrued on Provident Fund contributions made after April 1, 2016. “The principal amount will not be taxed and will continue to remain tax exempt on withdrawal. What we have said is 40 per cent of the interest accrued on contributions made after April 1 will be tax exempt and its remaining 60 per cent will be taxed.”

Aggarwal in the petition, said that “the money which is left after paying more direct/indirect taxes is saved into PPF/EPF and used for retirement planning. But, now even this corpus will be snatched away to a major extent”.

Commenting on the petition, Preethi Herman, Country Lead of Change.org said, “Taxing a huge chunk of that fund will affect crores of people. The fact that this Change.org petition by Vaibhav Aggarwal is gathering so much support so rapidly is indicative of the deep unhappiness people are feeling about this move.

PTI

References/Representations/Court Cases in various Ministries/Departments/ Organisations for grant of MACPS benefits in the promotional hierarchy

No. 22034/04/2013-Estt.(D)
Government of India
Ministry of Personnel Public Grievance & Pensions
Department of Personnel & Training
***

North Block, New Delhi
Dated: 01.03.2016

Office Memorandum

Subject :- References/Representations/Court Cases in various Ministries/Departments/Organisations for grant of MACPS benefits in the promotional hierarchy – reg.

***

In continuation of DOPT’ s earlier O.M. of even no. dated 20.01.2016 on the above mentioned subject, the undersigned is directed to forward a copy of the decision of Hon’ble CAT, Ahmedabad bench in OA No. 120/000018/2015 filed by Shri Manubhai B. Rathore Vs. UOI &Ors whereby the demand of the applicant for MACP in promotional Hierarchy has been dismissed.

(G.Jayanthi)
Director (E-I)
Phone No. 23092479

All Ministries/Departments of the Government of India.

ccis.nic.in

Management Training for Retiring Defence Personnel

 Management Training for Retiring Defence Personnel

Ministry of Defence
Press Information Bureau
Government of India

01-March, 2016

Approximately, 55,000 personnel retire annually from the armed forces. Government is providing training to the armed forces personnel before their retirement. The details of training provided by Government to armed forces personnel including Short Service Commissioned officers is as under:

DETAILS OF TRAINING COURSES:

Officers’ Training:

• 24 Weeks Management Courses at IIMs and other reputed B-Schools
• Modular management courses like Project Finance, Academic Institutions, Supply Chain, Retail, Six Sigma, Seafaring etc.
• Newly introduced courses for 2015-16 like Strategic Retail Management, HRM, Facility, Transition, Export and Import, Event Management etc., Corporate Social Responsibility and Jet Transition.

ICOs / ORs and Equivalents’ Training at Institutes:

• Security, Fire & Industrial Safety, Computer & IT including ‘O’ Level, Hospitality, Tourism, Agri based, Business Management, Modular Management, Vocational & Technical, Medical & Healthcare, Library & Information Science, Legal Assistant etc.
• Newly introduced courses for 2015-16 like Logistics & Transport Management, Retailing & Showroom, Corporate Office, Material management, Marine Engineering etc.

Courses at Regimental Centres:

Apart from the above mentioned training programmes at Institutes at least two courses are conducted every month at all the Regimental Centres to provide variety of courses to the retirees on pension drill. Indian Institutes of Management Ahmedabad, Lucknow and Indore are conducting 24 weeks Management Courses regularly for Armed Forces personnel, which help them in taking up employment at managerial levels.

This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to ShriMeghraj Jain in Rajya Sabha today.

PIB

Clarification about Changes made in the Tax Treatment for Recognised Provident Fund & National Pension System (NPS)

Clarification about Changes made in the Tax Treatment for Recognised Provident Fund & National Pension System (NPS)

There seems to be some amount of lack of understanding about the changes made in the General Budget 2016-17 in the tax treatment for recognised Provident Fund & NPS.

The following clarifications are given in this matter:-

(i) The purpose of this reform of making the change in tax regime is to encourage more number of private sector employees to go for pension security after retirement instead of withdrawing the entire money from the Provident Fund Account.

(ii) Towards this objective, the Government has announced that Forty Percent(40%) of the total corpus withdrawn at the time of retirement will be tax exempt both under recognised Provident Fund and NPS.

(iii) It is expected that the employees of private companies will place the remaining 60% of the Corpus in Annuity, out of which they can get regular pension. When this 60% of the remaining Corpus is invested in Annuity, no tax is chargeable. So what it means is that the entire corpus will be tax free, if invested in annuity.

(iv) The Government in this Budget has also made another change which says that when the person investing in Annuity dies and when the original Corpus goes in the hands of his heirs, then again there will be no tax.

(v) The idea behind this mechanism is to encourage people to invest in pension products rather than withdraw and use the entire Corpus after retirement.

(vi) The main category of people for whom EPF scheme was created are the members of EPFO who are within the statutory wage limit of Rs.15,000 per month. Out of around 3.7 crores contributing members of EPFO as on today, around 3 crore subscribers are in this category. For this category of people, there is not going to be any change in the new dispensation.

(vii) However, in EPFO, there are about 60 lakh contributing members who have accepted EPF voluntarily and they are highly – paid employees of private sector companies. For this category of people, amount at present can be withdrawn without any tax liability. We are changing this. What we are saying is that such employee can withdraw without tax liability provided he contributes 60% in annuity product so that pension security can be created for him according to his earning level. However, if he chooses not to put any amount in Annuity product the tax would not be charged on 40%.

(viii) There is no change in the existing tax treatment of Public Provident Fund (PPF).

(ix) Currently there is no monetary ceilings on the employer contribution under EPF with only ceiling being that it would be 12% of the salary of the employee member. Similarly, there is no monetary ceiling on the employer contribution under NPS, except that it would be 10% of salary. 

(x) Now the Finance Bill 2016 provides that there would be monetary ceiling of Rs1.5 lakh on employer contribution considered with the ceiling of the 12% rate of employer contribution, whichever is less. 

(xi) We have received representations today from various sections suggesting that if the amount of 60% of corpus is not invested in the annuity products, the tax should be levied only on accumulated returns on the corpus and not on the contributed amount. We have also received representations asking for not having any monetary limit on the employer contribution under EPF, because such a limit is not there in NPS. The Finance Minister would be considering all these suggestions and taking a view on it in due course.

Key Features of Budget 2016-2017 : Official pdf Download

Key Features of Budget 2016-2017

INTRODUCTION : Growth of Economy accelerated to 7.6% in 2015-16

CHALLENGES IN 2016-17 : Risks of further global slowdown and turbulence.

ROADMAP & PRIORITIES :  ‘Transform India’ to have a significant impact on economy and lives of people

AGRICULTURE AND FARMERS’ WELFARE : Allocation for Agriculture and Farmers’ welfare is Rs. 35,984 crore

RURAL SECTOR : Allocation for rural sector – Rs.87,765 crore.

SOCIAL SECTOR INCLUDING HEALTH CARE : Allocation for social sector including education and health care – Rs.1,51,581 crore.

EDUCATION, SKILLS AND JOB CREATION : 62 new Navodaya Vidyalayas will be opened

SKILL DEVELOPMENT : Allocation for skill development – Rs. 1804. crore.

JOB CREATION : GoI will pay contribution of 8.33% for of all new employees enrolling in EPFO for the first three years of their employment. Budget provision of Rs. 1000 crore for this scheme

INFRASTRUCTURE AND INVESTMENT : Total investment in the road sector, including PMGSY allocation, would be Rs. 97,000 crore during 2016-17.

FINANCIAL SECTOR REFORMS  : A comprehensive Code on Resolution of Financial Firms to be introduced.

GOVERNANCE AND EASE OF DOING BUSINESS : A Task Force has been constituted for rationalisation of human resources in various Ministries

FISCAL DISCIPLINE : Fiscal deficit in RE 2015-16 and BE 2016-17 retained at 3.9% and 3.5%

RELIEF TO SMALL TAX PAYERS : Raise the ceiling of tax rebate under section 87A fromRs. 2000 to Rs. 5000 to lessen tax burden on individuals with income upto Rs.5 laks

BOOST EMPLOYMENT AND GROWTH : Increase the turnover limit under Presumptive taxation scheme under section 44AD of the Income Tax Act to Rs. 2 crores to bring big relief to a large number of assessees in the MSME category.

MAKE IN INDIA : Changes in customs and excise duty rates on certain inputs to reduce costs and improve competitiveness of domestic industry

MOVING TOWARDS A PENSIONED SOCIETY : Withdrawal up to 40% of the corpus at the time of retirement to be tax exempt in the case of National Pension Scheme (NPS).

PROMOTING AFFORDABLE HOUSING : 100% deduction for profits to an undertaking in housing project for flats upto 30 sq. metres in four metro cities and 60 sq. metres in other cities

RESOURCE MOBILIZATION FOR AGRICULTURE, RURAL ECONOMY AND CLEAN 
ENVIRONMENT : Additional tax at the rate of 10% of gross amount of dividend will be payable by the recipients receiving dividend in excess of Rs.10 lakh per annum

PROVIDING CERTAINITY IN TAXATION : Committed to providing a stable and predictable taxation regime and reduce black money.

SIMPLIFICATION AND RATIONALIZATION OF TAXES : 13 cesses, levied by various Ministries in which revenue collection is less than ` 50 crore in a year to be abolished.

TECHNOLOGY FOR ACCOUNTABILITY : Expansion in the scope of e-assessments to all assessees in 7 mega cities in the coming years.

Authority: www.indiabudget.nic.in

House Rent Paid : 80GG has also been raised to 60,000 from 24,000

House Rent Paid : 80GG has also been raised to 60,000 from 24,000

The limit of deduction of house rent paid under section 80GG has also been raised to Rs. 60,000 from the existing Rs. 24,000 per annum to give relief to employees who live in rented houses.

Certain Tax Reliefs announced for small tax payers and others

While presenting the General Budget 2016-17 in Lok Sabha here today, the Union Finance Minister Shri Arun Jaitley said that the taxation is a major tool available to Government for removing poverty and inequality and this has to be cautiously exercised. But, he would like to give relief to small tax payers, the Finance Minister added.

Thus the ceiling of tax rebate under Section 87A of IT Act has been proposed to be raised to Rs. 5,000 from Rs. 2,000 for individuals with income less than Rs. 5 lakhs. He said that above 2 crore tax payers would get a relief of Rs. 3,000. The limit of deduction of house rent paid under section 80GG has also been raised to Rs. 60,000 from the existing Rs. 24,000 per annum to give relief to employees who live in rented houses.

Under the presumptive taxation scheme under Section 44AD of the Income tax Act, the limit of turnover or gross receipts has been raised to two crore rupees from the exiting one crore rupees to benefit about 33 lakh small business people. It frees a large number of such assesses in the MSME category from the burden of maintaining detailed books of account and getting audit done.

The presumptive taxation scheme is to be now extended to professionals with gross receipts up to Rs. 50 lakh with the presumption of profit being 50% of the gross receipts.

Finance Minister not given assurance for reviewing the retrograde recommendations of 7th CPC – NFIR

Finance Minister not given assurance for reviewing the retrograde recommendations of 7th CPC – NFIR

NFIR
National Federation of Indian Railwaymen
3, Chelmsford Road, New Delhi 110 055

Press Statement of M.Raghavaiah, General Secretary

Finance Minister Arun Jaitley’s Budget (2016-17) failed to address the genuine aspirations of working class.

• The Income Tax Exemption limit for serving and retired Central Government employees has not been revised.
• The Fixed Medical Allowance for Retired Central Government employees has not been raised to Rs. 2000/- p.m. from the existing Rs. 500/- p.m., resulting continued hardship to Retired Central Government employees who live in remote places and small towns where medical facilities not provided.
• The Finance Minister has not spoken on the employees’ demand for abolition of New Pension Scheme.
• It is sad to note that the Finance Minister has not given assurance for reviewing the retrograde recommendations of 7th Central Pay Commission although he said that a Committee has been constituted.

The Workers’ of Government Sector, Private as well Unorganized Sectors are disappointed over the Budget announcements.

Mr.Raghavaiah, General Secretary, NFIR has urged upon the Prime Minister to accept Railway Minister’s proposal sent in November, 2015 and see that Railway Employees are exempted from New Pension System.

sd/-
(M.Raghavaiah)
General Secretary

Source: NFIR

Budget 2016: Jaitley Cuts Down 54% Ministers Travel Expenses

Budget 2016: Jaitley Cuts Down 54% Ministers Travel Expenses

The travel and other expenses of Union Ministers have been slashed by a whopping 54 per cent in the 2016-17, according to the Budget proposals presented by Finance Minister Arun Jaitley today in Parliament.

The budget estimates, the amount allocated under the head of ‘Tour Expenses’ has been fixed at Rs 259 crore.

The expenditure under this head, which covers salaries, sumptuary and other allowances and travel of Cabinet Ministers, Ministers of State and ex-Prime Ministers, was pegged at Rs 269 crore for 2015-16.

However, the budgetary expenses under this head, which also covers maintenance of VVIP aircraft, was revised later to Rs 566.66 crore.

This year, the government has introduced Rs 4.35 crore under the head of ‘Hospitality and Entertainment’ under which expenditure on government hospitality and entertainment of foreign state guests and official entertainment arranged at Rashtrapati Bhawan on behalf of the Vice President and the Prime Minister.

It also includes reception on national days, investiture ceremonies and presentation of credentials.

Inputs with PTI